Best-in-Class Point-Of-Sale Strategies and Implementations

Best-in-Class Point-Of-Sale Strategies and Implementations

Best-in-Class Point-Of-Sale Strategies and Implementations


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Point-Of-Sale Strategies

and Implementations

SAP Retail Leadership Forum

Colin Haig, Industry Principal, SAP Retail

Peter Gerhardt, Chief Financial Officer, Town Shoes Limited

Glenn Wood, Director of Information Services, The Beer Store


The Economist survey:

Understand, anticipate and inspire

SAP teamed up with The Economist intelligence unit

and produced a three part research series called

Intelligent Merchandising:

Creating a Unique Shopping Experience

Each of the reports highlights survey data on:

• Understanding the Customer

• Anticipating the Customer

• Inspiring the Customer

The survey found Point-of-Sale was key to best-inclass

customer shopping experiences and effective

retail operations.

Let’s meet two retailers that are very focused on

understanding their customers and are delivering

inspiring results…

Source: Economist

Note: Several charts in this presentation with a “Source: Economist” refer to the three part report.

© SAP 2007 / Page 2

Glenn Wood – Director of IS - is brewing

inspiration and success at The Beer Store

Today, The Beer Store is a private

company owned by three Ontario

brewers: Labatt, Molson and


• The Beer Store management

maintains a close working

relationship with the Government of

Ontario through the Alcohol and

Gaming Commission of Ontario


436 Retail Stores, 6 Distribution Centre’s, 113 Retail Partners

Approximately 90% of Retail and Beer Distribution in Ontario.

300 Brands, 70+ Brewers from around the world. 700+ active SKU’s.

Environmental Leadership. Recycle over 99% bottles and 83% cans

Responsible Sales. Approximately 5 million challenges per year.

The Beer Store was created in

1927 by a group of brewers

working with the Government of

Ontario to create a responsible

system for beer distribution.

© SAP 2007 / Page 3

Peter Gerhardt – Town Shoes – Successful

steps to understanding its customers

Town Shoes is a nationwide

footwear, handbag and

accessory retailer,

headquartered in Toronto.

Two distinct formats:

• a large big box brand called

“The Shoe Company” that

offers brand-name shoes at up

to 50% for the whole family, at

over 60 locations

• more intimate, higher-end

“Town Shoes” with 33 specialty

stores including a Flagship

store on Toronto’s fashionable

Bloor Street.

© SAP 2007 / Page 4

How many pairs of shoes do you own?

The average woman owns

25 pairs of shoes*

The average man owns 7

pairs of shoes*

* United Press International

© SAP 2007 / Page 5

There’s no such thing as average!

Imelda Marcos received

quite a bit of fame with

her 1,200 pairs of shoes

Celine Dion boasts a

mere 500 pair of shoes

© SAP 2007 / Page 6

Town Shoes – Not your average retailer!

Unique Business


• Lack of visibility to inventory

• High customer churn

• Error-prone manual processes

• Need to identify fraud and eliminate shrink

• Small size IT team needed unique help

With only 1500 employees

and just under 100 locations,

the store systems use:

• SAP’s Application Managed

Services for centralized

applications such as Loss

Prevention, EFT, and Loyalty

• SAP Point-of-Sale in-store

© SAP 2007 / Page 7

The Beer Store Challenge – Understanding the

Customer, anticipating their demand

Unique Business





• Fixed Pricing by customer type

• Corporate governance model

• Customer focus, POS throughput

• Multiple store formats

• Perishable Product with a 35 day

manufacturing cycle

• Support Innovation

• Business Process Re-engineering

• Access to Information

• Staged renewal

• Retire hardware; End decentralized data

Achieved with

Enterprise SOA

and Industry


• Messaging via JMS; using ARTS XML

• Heterogeneous environment: SAP, 3 rd party,

and own Legacy and New applications

• SAP Enterprise POS w/ ARTS JavaPOS

• A few clicks to deploy the technology

© SAP 2007 / Page 8

Discussion Topics

What does a best in class implementation look like?

What did you do to ensure the system would be a success?

Were there particular steps to ensure that the project accomplished the

objectives ?

Each of you went through some challenges. Can you share them? And how

you addressed them?

• some internal

• some vendor

• pioneering

• some lessons learned and recommendations ?

© SAP 2007 / Page 9

The Economist: How best to gain Understanding of

the Customer

Key Observations:

• Capturing the data has to happen at POS

and other channels

• Timely consolidation of data is an issue

• “Analysts” are in multiple job roles

• Marketing

• Merchants (Price, Promo, Product)

• Loss Prevention / Asset Protection

• Store sales operations

How does Town Shoes loyalty

work? How are you refining it?

How does Beer Store perceive

its customers?

Source: Economist


• POS solutions need to be flexible

• Centralized solutions for Loss Prevention

and Loyalty are key

• Analytics to support KPIs are important

• Near – realtime information is empowering

© SAP 2007 / Page 10

The Economist: How retailers are Inspiring the



• Inspire the Customer by focusing

on knowing your clients

• Smarter merchandising

• Empowered staff at HQ and


Source: Economist

Can you explain how Town Shoes is using POS

as a portal to get to merchandise ?

How has POS tied in to The Beer Store’s

environment ?


• Operational Systems like POS

when combined with loyalty

solutions can be enablers to

gather customer data, and inspire

them with targeted offers

• Customer satisfaction is driven

by empowering staff, to enable

operational efficiencies,

accelerate performance, deliver

better promo execution.

© SAP 2007 / Page 11

Concluding Remarks

Retailers of all sizes and complexity are seeing real benefits, and there are

challenges getting there.

Business Process, People, and Technology need to come together.

Best-in-Class Retailers use SAP Store Platform to help:

•Understand by using a Single Version of the Truth

•Anticipate Customer Demand for Competitive Advantage

•Inspire the Shopping Experience




© SAP 2007 / Page 12

Cheers & Thank you!

To learn more, please see:

• Business Transformation Studies

• The Economist Intelligent Merchandising

Contact the team at SAP for more information!

© SAP 2007 / Page 13

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